South Melbourne deals on the rise in 2022

19 April 2022

The South Melbourne commercial development market is on the rise as deal activity within this inner-city pocket rapidly shifts in 2022.

Colliers’ Daniel Wolman says South Melbourne is a truly unique inner-city suburb on the doorstep of the Melbourne CBD that is highly regarded for its urban lifestyle, culture and amenities whilst only being a stone throw away from the CBD grid. 

“As Melbourne reopens, welcomes back international travellers and students, and the workforce reverts back to the traditional office environment, confidence is rising, and decisions that were generally put off over the last two years are being converted in 2022,” Mr Wolman said.

“The unparalleled lifestyle, amenity and connectivity to the CBD positions South Melbourne as one of the most in demand city fringe locations for developers. Over recent years, the precinct has witnessed the development of Market Lane at 68 Clarke Street and The Deague Group’s 101 Moray Street project. In the pipeline, 134 Moray Street and Eleven Eastern, 11 Eastern Road, will add to this influx of brand new premium commercial stock.”

A blank canvas commercial development site just around the corner from the South Melbourne Market unconditionally traded for a record land rate of circa $11,500 per square metre just last month, exclusively through Colliers Melbourne City Sales. Mr Wolman said the deal at 135-137 Market Street highlighted the market’s ability to pay premium prices for prime development sites.

A much larger site, just around the corner at 7-19 Ballantyne Street, is currently on market through Colliers and Allard Shelton. The site expands across 1,750sqm of Commercial 2 Zoned land with immediate access into the CBD Grid. Improved with a three-level office building and subject to a short term lease, the property offers major future upside for substantial development outcomes (STCA).  The International Expressions of Interest campaign closes Thursday 28th April.

In response to the rising developer demand, Colliers also have another South Melbourne permit-approved site coming to market later this month with a proposed scheme for a four-level commercial office building. The site at 450-460 City Road will be marketing by Leon Ma, Oliver Hay and Daniel Wolman. The opportunity is a strategic amalgamation play across seven separately titled sites with an underlying flexible zoning and corner positioning in the heart of South Melbourne.

“With developer activity in the precinct reaching record highs, owners are looking to directly capitalise on this rise,” Mr Wolman said.